Oil & Gas Corporate News
Hardy Oil & Gas (LON:HDY) (BUY, £3.00) (HDY, 168p, ? (1.75%)) announced that the KGV-D3-W1 exploration well has been temporarily suspended due to unresolved mechanical issues associated with the blow out preventer of the Deepwater Expedition drilling rig. The well was drilled to a depth of 2,608m MD at which time intermediate casing was set. Subsequently, the operator spent a considerable amount of time attempting to resolve a problem with the control system of the drilling rig's BOP. The operator has been unable to resolve the issue to its satisfaction and, mindful of safety and operational matters, has taken the decision to suspend the well. The operator intends to re enter the well at the earliest possible opportunity, with an alternative deepwater rig. Hardy holds a 10% participating interest in the block.
Comment: An unwelcome delay but surely a necessary decision in itself as well as in the light of recent events unfolding in the GOM. Rating and price target unchanged.
£UEL (UEL, 11.75p, ? (9.3%)) announced it has issued 8,693,006 shares to Petraco Oil Company Limited. The transaction is part of a restructuring agreement between the companies, in which Urals owes a total of $34.3m to Petraco.
Circle Oil (LON:COP) (BUY, £0.90) (COP, 33.5p, ? (5.51%)) announced that the Al-Amir SE-6X down-dip flank appraisal well has completed coring and logging the oil-bearing Upper Shagar and Lower Rahmi Kareem Sandstones and has now reached a target depth of 13,900ft in the Lower Rudeis. Whilst drilling toward the secondary deeper objective of the Nubia Sandstones, some significant gas shows were recorded and for the safety of well integrity, it was decided to terminate the drilling of the well in the Lower Rudeis and run a 5" liner. Testing of the well is now planned. Once the well is tested and evaluated, a further announcement concerning the results of the well will be made. Circle Oil (LON:COP) Plc owns a 40% interest non-operating interest in the concession.
Comment: The Al Amir SE field keeps getting bigger as a result of Al Amir SE-5 & 6 failure to locate the oil-water contact, which is a rather nice problem for the Company. Rating and price target unchanged.
Matra Petroleum (LON:MTA) (BUY, £0.11) (MTA, 3.5p, ? (29.65%)) announced the results of appraisal well-13 on the Sokolovskoe field, in the Orenburg region, Russia. Drilling of well-13 has…
